While there are plenty of mistakes that can be made when dealing with your retirement I found a great video done by CNBC that lists some of the biggest retirement mistakes that I see. Watch the following video and let me know if you agree or disagree with the mistakes. Then continue reading to find out what I think about these 3 issues and what we can do to fix them.
Retirement Issue #1 Not Planning Ahead
This is the biggest issue I see with retirement planning. There are so many benefits to saving for retirement as early as possible. In theory, if you start saving when you are in your early 20’s it can mean saving only a hundred dollars a month. If you wait until you are in your 30’s it could require you to save hundreds of dollars. If you wait until you’re in your 40’s and 50s you may have to save thousand’s a month just to save as much as hundred dollars a month in your 20’s until you retire.
What this means is START TODAY no matter what your age and save for retirement. For help figuring out how to actually start saving for retirement check out our retirement guide.
Retirement Issue #2 Retiring Too Early
Retirement is something to enjoy and to be excited about. Many times those entering their retirement age decide to retire simply because they are in their mid 60’s and not because they are actually able and ready to retire. This issue really just stems back to issue number 1, not planning ahead for your retirement.
Once you actually have a retirement plan and are implementing that plan it is very wise to check that plan on a yearly basis. Are you still able to hit the retirement numbers you need in order to retire when you want. Sometimes when checking your numbers you may see that you need to delay your retirement a few years because market changes have affected your retirement nest egg. Whatever issue may come up, if you are checking your retirement plan yearly you will be ready for anything that comes your way. Sadly, sometimes this may mean retiring a little later than you originally planned.
Retirement Issue #3 Helping Out Children Too Much
This is a slippery slope to be on. It can be very easy to forget about yourself and especially your retirement when you have children that are having financial troubles. You must remember though that at times it is not wise to help your children out. In fact, it could make it worse. What happens if a major medical issue comes up with you or your spouse while you are in retirement and you know that this issue will put a huge strain on your retirement nest egg? In turn you could make your children more responsible for your retirement and if your children are already strapped for cash themselves what will happen?
Focus on your retirement and try your best to make sure you keep your retirement nest egg safe from helping out your children. In the long run if you do end up helping children from your retirement nest egg it could hurt them more than if you didn’t help them.
These are just a few of the issues that arise with retirement and retirement planning. The best thing to do right now is to start planning and if needed talk to a retirement specialist that can help you out.
Author: Nick Barker